Wall Street flirts with records after oil prices give back some of Monday's spurt

Stocks got a boost after oil prices gave back some of their big jumps from Monday. The price for a barrel of Brent crude, the international standard, fell 2.7% to $111.43 after briefly topping $115 on Monday, though it’s still well above its roughly $70 price from before the war with Iran.

A ceasefire in the war appears to be holding, even after the United Arab Emirates said Monday that Iran fired missiles and drones at it. The U.S. military is trying to force open a path in the Strait of Hormuz, which would allow oil tankers to resume shipments from the Persian Gulf and hopefully bring down the price of crude.

Iran’s powerful parliamentary speaker and chief negotiator, Mohammad Bagher Qalibaf, accused the United States of undermining regional security with the effort to end Iran’s stranglehold on the strait and warned that Tehran will respond.

Even with the war ongoing, the U.S. stock market has remained remarkably resilient on its record-setting run. That’s in large part due to the strong profits that U.S. companies have reported for the start of 2026 despite the rise in oil prices since the end of February.

“This has been a ‘why ask why’ market,” according to Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “You just have to go with it.”

Even though many risks are still weighing on the market, “investors are looking at earnings” and how much companies are spending on AI data centers and other investments, he said.

DuPont’s stock climbed 5.5% Tuesday after the chemical giant led another cavalcade of companies reporting better-than-expected profits for the latest quarter.

DuPont said its water technologies business felt some impact because of the war with Iran due to logistics disruptions in the Middle East. But it nevertheless raised its forecasts for financial results over the full year due in part to its strong start to 2026.

Other winners included American Electric Power Co., which rose 3%, and Cummins, which added 3.2%, after they likewise made more money during the first three months of the year than analysts expected.

Pinterest soared 10% after the online bulletin board topped Wall Street’s first-quarter sales and profit targets as its number of active monthly users jumped 11% to 631 million.

AB InBev likewise topped analysts’ profit forecasts, and it credited growth for its Corona, Stella Artois and Michelob Ultra brands outside of their home markets. “Cheers to beer,” CEO Michel Doukeris said, as the company’s stock that trades in the United States rallied 7.9%.

In stock markets abroad, indexes were mixed in Europe. The CAC 40 rose 0.7% in Paris, but the FTSE 100 fell 1.3% in London. Many Asian markets were closed for holidays, as Hong Kong’s Hang Seng fell 0.8%.

Australia’s S&P/ASX 200 slipped 0.2% after the central bank raised its benchmark interest rate to 4.35%, saying conflict in the Middle East had sharply increased fuel and commodity prices that were already adding to inflation.

In the U.S. bond market, Treasury yields eased after oil prices gave back some of Monday’s gains. The yield on the 10-year Treasury fell to 4.42% from 4.45% late Monday.

That’s still well above its 3.97% level from just before the war began. That rise has made mortgages and other kinds of loans for U.S. households and businesses more expensive.

AP Writers Chan Ho-him, Matt Ott and Rod McGuirk contributed.